Advisers, do your clients hold interests in unit trusts that operate a business? If so, their estate planning could be at risk.
When a client shares unit holdings with a business partner, it's crucial to plan for what happens if either passes away. Without a Buy-Sell or Unit Holders Agreement in place, the surviving partner might not be able to buy out the deceased's interest, impacting the business’s continuity. Alternatively, your client may face the prospect of the deceased partner’s spouse becoming involved in the trust’s operation.
Key steps for you as an adviser:
Assess the value of your client’s business interest.
Review existing trust deeds and agreements.
Discuss options for the sale or transfer of units.
Note: Always consult with a lawyer before making any changes to a unit trust or estate plan to ensure compliance with legal requirements and protect your client’s best interests.
Inherit Australia provides advisers with a structured estate planning facilitation process to ensure that client interests and wishes are maintained as part of their estate plan.
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